Measures in DEA with an application to the Malmquist Index

This paper shows the importance of goal vectors G in measuring and dealing with DEA inefficiencies. It emphasizes the advantages of the family of addi tive relative to the traditional oriented DEA models and shifts the primary emphasis to measuring inefficiency rather than efficiency. This new (raw) inefficiency measure RIN incorporates both the traditional DEA efficiency a nd the DEA slacks and provides the background for a new approach to the Mal mquist Index. The final section points out some deficiencies in existing co mputational procedures for selecting G and calls for continued research on the selection process, as well as showing a role for G in returns to scale studies.